Ethereum recently saw a notable rise in price, trading above the psychological price mark of $3,000, which has reignited interest in the crypto market. According to on-chain analysis, retail investors appear to be adopting a “holding” strategy, resisting the urge to sell despite the increase in ETH’s value.
Market analysts view this holding behavior as significant, especially given general market sentiment influenced by the so-called “Trump Trade,” which has helped mitigate risks and improve market conditions.
Ethereum deposits limited to exchanges
According to onatt, the CryptoQuant analyst behind the analysis, this trend of holding ETH without significant profit-taking suggests that many investors still perceive the cryptocurrency as “undervalued,” even at its high levels.
Another factor mentioned by Onatt to support this observation is the limited inflow of ETH to major custodial addresses on exchanges such as Binance and OKX, indicating that traders are not moving their assets to sell.
Typically, large volumes of ETH flow into exchanges and usually signal impending selling pressure. However, this was not the case, reflecting the cautious but optimistic outlook of retail market participants.
Key indicator highlighting investor sentiment
The CryptoQuant analyst highlighted another major metric that reinforces this sense of “conservation”: the spent output profit ratio (SOPR), which tracks the profitability of coins spent.
onatt reveals that this metric remains close to 1, indicating that most Ethereum transactions are occurring near the break-even point. This data indicates a lack of significant profit making among ETH holders, highlighting a strong “buy and hold” sentiment.
According to the analyst, coupled with weak exchange flows, this indicator also suggests that investors maintain confidence in Ethereum’s long-term growth potential.
Furthermore, Onatt’s analysis suggests that as long as ETH maintains levels above $2,800, it could pave the way for a rapid move towards the $4,000 range.
So far, Ethereum is still trading above just over $3,000. Although the asset’s price increase is nowhere near that of BTC, it has managed to maintain stability above the crucial psychological price level.
At the time of writing, ETH has surged 0.2% over the past day with a current trading price of $3,100, a price that takes Ethereum down 36.4% per month. compared to its all-time high (ATH) of $4,878 recorded in 2021.
Analysts have suggested that the current market price of ETH presents a notable buying opportunity for the asset. A crypto enthusiast known as Venturefounder in particular predicted a “conservative” price target of $10,000-$13,000 for ETH.
$ETH: road to $13,000
This could be a transformative cycle for #Ethereum.
$10,000 to $13,000 is conservative. pic.twitter.com/q3Er9EG9gS
– venture founder (@venturefounder) November 19, 2024
Featured image created with DALL-E, chart from TradingView
